VATICAN CITY, VATICAN - MARCH 04: A cardinal arrives at the Paul VI hall for the opening of the Cardinals' Congregations on March 4, 2013 in Vatican City, Vatican. The congregations of cardinals will continue until all cardinal electors have arrived in Rome, whereupon the College will decide on the start-date of the Conclave to elect a new Pope. (Photo by Franco Origlia/Getty Images)

VATICAN CITY, VATICAN - APRIL 24: A general view of St. Peter's Square during the Easter Mass held by Pope Benedict XVI on April 24, 2011 in Vatican City, Vatican. (Photo by Franco Origlia/Getty Images)

This picture shows the headquarters of the Institute for Religious Works (IOR) the Vatican's bank on February 18, 2012 at The Vatican. erman financier Ernst von Freyberg was named the new president of the Vatican bank on February 15, ending a long vacancy after his predecessor at the secretive institution was unceremoniously sacked. AFP PHOTO / GABRIEL BOUYS (Photo credit should read GABRIEL BOUYS/AFP/Getty Images)

Pope Franciswalks to the altar during his grandiose inauguration mass on March 19, 2013 at St Peter's square at the Vatican. Pope Francis swept into St Peter's Square on Tuesday to greet throngs of pilgrims before a sumptuous ceremony in which Latin America's first pontiff will receive the formal symbols of papal power. AFP PHOTO / GABRIEL BOUYS (Photo credit should read GABRIEL BOUYS/AFP/Getty Images)

VATICAN CITY, VATICAN - DECEMBER 25: Pope Francis delivers his Christmas Day message from the central balcony of St Peter's Basilica on December 25, 2013 in Vatican City, Vatican. The 'Urbi et Orbi' blessing (to the city and to the world) is recognised as a Christmas tradition by Catholics with the Pope Francis focusing this year on the peace in the world. (Photo by Franco Origlia/Getty Images)

VATICAN CITY, VATICAN - APRIL 20: People gather as Pope Francis holds Easter Mass in St. Peter's Square on April 20, 2014 in Vatican City, Vatican. Pope Francis is attending the Holy Week for his second time as a Pontiff. (Photo by Franco Origlia/Getty Images)

Pope Francis greets the crowd from the popemobile during his weekly general audience on December 3, 2014 at the Vatican. Photo Credit: Gabriel Bouys, APF/Getty Images

Pope Francis waves at the end of a meeting with the Pauline family (Paolina family) in occasion of the centenary of its foundation by Don Giacomo Alberione, on Novembre 27, 2014 at Paul VI audience hall at the Vatican. Pope Francis heads to Turkey on Friday, it will be the first papal visit to Turkey since the now-retired Benedict XVI went there in 2006 against a backrop of anger in much of the Muslim world over comments which appeared to link the Prophet Mohamed to violence. AFP PHOTO / GABRIEL BOUYS (Photo credit should read GABRIEL BOUYS/AFP/Getty Images)

VATICAN CITY, VATICAN - NOVEMBER 26: Pilgrims leave the St. Peter's square at the end of Pope Francis' general audience on November 26, 2014 in Vatican City. (Photo by Baris Seckin/Anadolu Agency/Getty Images)

VATICAN CITY, VATICAN - NOVEMBER 23: Pope Francis waves as he leaves St. Peters Square at the end of a canonization mass on November 23, 2014 in Vatican City, Vatican. Pontiff canonized six new saints two from Kerala (India) Kuriakose Elias Chavara and Mother Eufrasia Eluvathingal, and four Italians: Amato Ronconi, Giovanni Antonio Farina, Nicola da Longobardi and Ludovico da Casoria. (Photo by Franco Origlia/Getty Images)

VATICAN CITY, VATICAN - NOVEMBER 23: A general view of a canonization mass celebrated by Pope Francis in St. Peters Square on November 23, 2014 in Vatican City, Vatican. Pontiff canonized six new saints two from Kerala (India) Kuriakose Elias Chavara and Mother Eufrasia Eluvathingal, and four Italians: Amato Ronconi, Giovanni Antonio Farina, Nicola da Longobardi and Ludovico da Casoria. (Photo by Franco Origlia/Getty Images)

VATICAN CITY, VATICAN - NOVEMBER 23: Pope Francis waves as he leaves St. Peters Square at the end of a canonization mass on November 23, 2014 in Vatican City, Vatican. Pontiff canonized six new saints two from Kerala (India) Kuriakose Elias Chavara and Mother Eufrasia Eluvathingal, and four Italians: Amato Ronconi, Giovanni Antonio Farina, Nicola da Longobardi and Ludovico da Casoria. (Photo by Franco Origlia/Getty Images)

VATICAN CITY, VATICAN - OCTOBER 06: Australian Cardinal George Pell arrives at the Synod Hall for the opening of the Synod on the themes of family on October 6, 2014 in Vatican City, Vatican. The two week General Assembly will discuss the 'The Pastoral Challenges of the Family in the Context of the Evangelization'. (Photo by Franco Origlia/Getty Images)

VATICAN CITY, VATICAN - JUNE 29: Archbishop of Sydney, Cardinal George Pell (C) attends the mass and imposition of the Pallium upon the new metropolitan archbishops held by Pope Francis for the Solemnity of Saint Peter and Paul at Vatican Basilica on June 29, 2013 in Vatican City, Vatican. Pope Francis delivered the homily at Mass in St Peter's Basilica on Saturday morning, to mark the Solemnity of Saints Peter and Paul, Apostles and Patrons fo the city of Rome. In his remarks following the Gospel reading, the Holy Father focused on a particular task of the Petrine ministry, which is to strengthen, or confirm, all the faithful. (Photo by Franco Origlia/Getty Images)

Interior of the Basilica of Saint Peter in Rome', 1750s. Panini, Giovanni Paolo (1691-1765). Italy, Roman School. Found in the collection of the State Hermitage, St. Petersburg. (Photo by Fine Art Images/Heritage Images/Getty Images)

VATICAN CITY, VATICAN - MARCH 19: Pope Francis during his Inauguration Mass on March 19, 2013 in Vatican City, Vatican. The inauguration of Pope Francis is being held in front of an expected crowd of up to one million pilgrims and faithful who have crowded into St Peter's Square and the surrounding streets to see the former Cardinal of Buenos Aires officially take up his position. Pope Francis' inauguration takes place in front his cardinals, spiritual leaders as well as heads of states from around the world and he will now lead an estimated 1.3 billion Catholics. (Photo by Europa Press/Europa Press via Getty Images)

Up Next

See Gallery

Discover More Like This

HIDE CAPTION

SHOW CAPTION

of

SEE ALL

BACK TO SLIDE

(Reuters) - The Vatican's economy minister has said hundreds of millions of euros were found "tucked away" in accounts of various Holy See departments without having appeared in the city-state's balance sheets.

In an article for Britain's Catholic Herald Magazine to be published on Friday, Australian Cardinal George Pell wrote that the discovery meant overall Vatican finances were in better shape than previously believed.

"In fact, we have discovered that the situation is much healthier than it seemed, because some hundreds of millions of euros were tucked away in particular sectional accounts and did not appear on the balance sheet," he wrote.

"It is important to point out that the Vatican is not broke ... the Holy See is paying its way, while possessing substantial assets and investments," Pell said, according to an advance text made available on Thursday.

Pell did not suggest any wrongdoing but said Vatican departments had long had "an almost free hand" with their finances and followed "long-established patterns" in managing their affairs.

"Very few were tempted to tell the outside world what was happening, except when they needed extra help," he said, singling out the once-powerful Secretariat of State as one department that had especially jealously guarded its independence.

"It was impossible for anyone to know accurately what was going on overall," said Pell, head of the new Secretariat for the Economy that is independent of the now downgraded Secretariat of State.

AUSTRALIAN OUTSIDER

Pell is an outsider from the English-speaking world transferred by Pope Francis from Sydney to Rome to oversee the Vatican's often muddled finances after decades of control by Italians.

Pell's office sent a letter to all Vatican departments last month about changes in economic ethics and accountability.

As of Jan. 1, each department will have to enact "sound and efficient financial management policies" and prepare financial information and reports that meet international accounting standards.

Each department's financial statements will be reviewed by a major international auditing firm, the letter said.

Since the pope's election in March, 2013, the Vatican has enacted major reforms to adhere to international financial standards and prevent money laundering. It has closed many suspicious accounts at its scandal-rocked bank.

In his article, Pell said the reforms were "well under way and already past the point where the Vatican could return to the 'bad old days'."